Which of the Following Is an Objective of Capital Budgeting

question 4

Multiple Choice

Which of the following is an objective of capital budgeting?

• A)To eliminate all risk.
• B)To discount all future and past cash flows.
• C)To earn a satisfactory return on investment.
• D)To reverse past decisions.
• E)To reduce the number of investment activities.

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Definitions:

Revocation

The official cancellation or withdrawal of an offer, license, or agreement.

Unilateral Contract

A binding agreement in which one party promises to do something in return for an act of the other party, rather than a promise.

Profit Participation

A financial arrangement where an individual's or entity's income is partially derived from the profits of a business or project.

Feature Documentary

A non-fiction film that focuses on real-life events or issues, offering in-depth exploration.